Roll-Your-Own Tobacco Products are Gaining Traction Due to Their Affordable Nature
The rising demand for hand-rolled or handmade cigarettes, that are less expensive than factory-made (FM) cigarettes, has driven global demand for roll-your-own (RYO) tobacco products. Handmade cigarettes are generally subject to less restrictions and taxes. As a result, these products are becoming increasingly popular among financially stressed young consumers as well as people with lower annual incomes. However, usage of RYO tobacco products is increasing in developed countries over the years. The COVID-19 pandemic-caused financial crisis has increased price sensitivity between low- and middle-income consumers.
As a result, price-conscious consumers are shifting towards lower-cost alternatives from their previous choice. Additionally, RYO smokers are less inclined to quit smoking than factory-made cigarette consumers, according to a research published in NCBI. The primary reason for RYO smokers' unwillingness to stop is the reduced cost of RYO products compared to FM cigarettes. As a result, the market for roll-your-own tobacco products is anticipated to grow significantly in the upcoming decades.
As a result, price-conscious consumers are shifting towards lower-cost alternatives from their previous choice. Additionally, RYO smokers are less inclined to quit smoking than factory-made cigarette consumers, according to a research published in NCBI. The primary reason for RYO smokers' unwillingness to stop is the reduced cost of RYO products compared to FM cigarettes. As a result, the market for roll-your-own tobacco products is anticipated to grow significantly in the upcoming decades.
Growing Popularity of RYO Tobacco Among Millennials and Gen Z Will Boost Market Growth
An increase in tobacco product consumption among women and students is fuelling the growth. Cigars were the second-popular tobacco product among middle and high school students in the United States in 2022. As per the CDC, approximately 24% of students using any tobacco product in 2022 opted for menthol-flavored varieties, with the highest prevalence among high school students accounted for 24.3% and males 25.6%. Especially, non-Hispanic White students exhibited the highest usage of 30.1%, contrasting with lower rates in non-Hispanic Black students with 7.8%. This trend, coupled with delayed smoking initiation in certain demographics, highlights shifting preferences influencing the Roll Your Own Tobacco Products market.
The major companies have been launching new products that cater to the shifting demands of millennial and generation Z consumers. Market players are offering a variety of roll-your-own tobacco products in exciting and fresh flavours, aimed primarily at youth aged 18-30, men and women. According to the Food and Drug Administration (FDA), nearly 18.6 million people across the country are current users of menthol cigarettes. Usage of roll-your-own tobacco products has increased in developed economies. With the increase in commercial or cigarette manufacturers such as ITC, Marlboro etc. and the consumption of cigarettes by celebrities, the market is likely to grow as the youth gets evolved with the product and found it fascinating, resulting in larger market shares of roll-your-own tobacco product.
The major companies have been launching new products that cater to the shifting demands of millennial and generation Z consumers. Market players are offering a variety of roll-your-own tobacco products in exciting and fresh flavours, aimed primarily at youth aged 18-30, men and women. According to the Food and Drug Administration (FDA), nearly 18.6 million people across the country are current users of menthol cigarettes. Usage of roll-your-own tobacco products has increased in developed economies. With the increase in commercial or cigarette manufacturers such as ITC, Marlboro etc. and the consumption of cigarettes by celebrities, the market is likely to grow as the youth gets evolved with the product and found it fascinating, resulting in larger market shares of roll-your-own tobacco product.
Recent Trends in the Roll-Your-Own Tobacco Products Industry:
- Growing health concerns and stricter regulations boost demand for less harmful tobacco alternatives.
- Consumers seek natural, organic tobacco free of additives, prompting manufacturers to offer pure blends.
- Growing consumer interest in premium RYO products, including unique blends and high-quality components.
- Advances in rolling technology, such as automatic machines and ergonomic tools, improve user experience.
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Accessibility of Alternate Products May Limit ROY Tobacco Market Expansion
The lack of manufacturers to meet the government's cigarette standard may restrict market growth during the forecast period. As per the CDC, the roll-your-own (RYO) tobacco products market faces significant restraints due to the growing preference for other tobacco products among youth. In 2023 for instance, electronic cigarettes which are the commonly used type of cigarettes were used by 10 % of high school students and 4.6 % of middle schoolers therefore eclipsing RYO products like traditionally made cigarette sticks. Also, it was noted that only 1.9 % high schoolers and 1.1 % youngsters in primary schools were smokers while those who puffed on cigars were 1.8 % and 1.1 % respectively. For instance, smokeless tobacco products had similar low amount usage levels as hookah use at 1.5% and 1.1% among students in the senior secondary school category respectively. The growing popularity of e-cigarettes and hookah poses a challenge to the market for roll-your-own tobacco products.
Legal Rulings and Strategic Moves Highlight Evolving Dynamics in Smoking and Cannabis Markets
Major industry leaders utilize strategies that focus on launching new products, merging with competitors, and purchasing companies to grow their customer base and enhance their range of products. In February, 2023, Republic Brands, a leading distributor of rolling papers and luxury smoking accessories, has received a permanent injunction against Defendant HBI International in a federal case, requiring HBI to cease making claims about their RAW Organic Hemp rolling papers. In addition, in July 2023 saw Philip Morris International the dominant global player in tobacco industry announcing buying out Israeli Marijuana tech firm named Syqe Medical. One of its main products is a metered dose inhaler that precisely administers cannabis positioning it as one of the key players within this sector. The agreement indicates a significant change in the approach taken by tobacco industry towards cannabis after some investments from other important companies. Such a change might alter market dynamics and increase visibility for Syqe Medical in marijuana sector.
Furthermore, JTI launched an updated version of Sterling Essential Rolling in January 2023, featuring new rolling papers, a better blend, and a convenient zip pouch. This redesign caters to the growing ultra-value segment, which dominates 80.5% of sales in the RMC and RYO sectors. Available in 5x30g pouches and 5x50g pouches, the product refresh aims to meet consumer demands for value and convenience. JTI's marketing efforts include targeted in-depot promotions to boost retailer engagement and sales.
Furthermore, JTI launched an updated version of Sterling Essential Rolling in January 2023, featuring new rolling papers, a better blend, and a convenient zip pouch. This redesign caters to the growing ultra-value segment, which dominates 80.5% of sales in the RMC and RYO sectors. Available in 5x30g pouches and 5x50g pouches, the product refresh aims to meet consumer demands for value and convenience. JTI's marketing efforts include targeted in-depot promotions to boost retailer engagement and sales.
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Increasing Smoking Prevalence Will Drive ROY Tobacco Product Demand in Europe
In 2023, Europe dominated the market for roll-your-own tobacco products. Another factor driving the growth of the roll-your-own tobacco product industry in Europe is consumers' high spending power and luxurious lifestyle. The Asia Pacific market for roll-your-own tobacco products is expected to grow at the fastest pace. Tobacco is the world's leading reason for preventable death, killing almost 8 million people each year, according to the World Health Organization. Furthermore, it claims approximately 1.6 million lives in the South East Asian Region (SEAR), which is also a leading producer and user of tobacco. According to the World Health Organization (WHO), an estimated 1.3 billion people in the world's population smoke, and around 80% of those who smoke live in low- and middle-income countries. China, Vietnam, the Philippines, Malaysia, India, Bangladesh, Thailand and Indonesia are among the region's largest markets. Demand is expected to rise in the coming years due to increased product acceptance by women and the elderly in various countries.
According to the Foundation for a Smoke-Free World, India has 267 million tobacco users, making it the world's second largest tobacco user country behind China. Approximately 100 million people aged 15 and older currently smoke tobacco including cigarettes and bidis; India has a sizable smoking population, which is projected to fuel market expansion. Additionally, increased advertising for various tobacco products on digital platforms and satellite television channels is projected to encourage purchasers to spend more money on new goods. Rising female employment rates in India are acting as a driving force in this industry.
According to the Foundation for a Smoke-Free World, India has 267 million tobacco users, making it the world's second largest tobacco user country behind China. Approximately 100 million people aged 15 and older currently smoke tobacco including cigarettes and bidis; India has a sizable smoking population, which is projected to fuel market expansion. Additionally, increased advertising for various tobacco products on digital platforms and satellite television channels is projected to encourage purchasers to spend more money on new goods. Rising female employment rates in India are acting as a driving force in this industry.
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The report provides a detailed overview of the roll your own tobacco products market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for roll-your-own tobacco products market has been offered for all regional market share, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the roll-your-own tobacco products market. These Y-o-Y projections on regional and country-level markets brighten the political, economic and business environment outlook, which are anticipated to have a substantial impact on the growth of the roll-your-own tobacco products market. Some key country and region included in the roll your own tobacco products market report as follows:
| Regions | Countries |
|---|---|
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Central America Countries, Caribbean Countries, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Poland, Netherlands, Switzerland, Belgium, Sweden, Austria, Norway, Denmark, Czech Republic, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Singapore, Malaysia, Philippines, Vietnam, Thailand, Bangladesh, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Nigeria, Egypt, Turkey, Morocco, Ethiopia, Algeria, Israel, Iran, Iraq, Kenya, Rest of MEA |
Roll Your Own Tobacco Products Market Research Report Covers In-depth Analysis on:
- Roll-your-own tobacco products market detailed segments and segment-wise market breakdown
- Roll-your-own tobacco products market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in roll-your-own tobacco products industry)
- Current, historical and forthcoming 10 years market valuation in terms of roll-your-own tobacco products market size (US$ Mn), volume (Units), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Roll your own tobacco products market demand analysis
- Roll-your-own tobacco Products market pricing analysis over forecast period (by key segment and by region)
- Roll-your-own tobacco products market regional insights with region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in roll-your-own tobacco products market
- Regulatory landscape by key regions and key countries
- Supply chain and value chain analysis in roll-your-own tobacco products market
- Roll-Your-Own Tobacco Products market sales and distribution strategies
- A comprehensive overview of parent market
- A detailed viewpoint on roll your own tobacco products market forecast by countries
- Mergers and acquisitions in roll-your-own tobacco products market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What are the key trends driving the Roll-Your-Own Tobacco Products market?
Key trends include increasing consumer interest in personalized tobacco experiences, rising prices of pre-packaged cigarettes and the growing popularity of DIY tobacco rolling techniques.
What are the major challenges faced by the Roll Your Own Tobacco Products market?
Major challenges include regulatory restrictions, competition from pre-packaged tobacco products and health awareness campaigns impacting consumer attitudes towards tobacco use.
How does the cost of roll-your-own tobacco products compare to pre-packaged tobacco products?
Roll-your-own tobacco products are generally more cost-effective compared to pre-packaged cigarettes, offering a more affordable option for consumers.
